Finding 401243 (2022-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-06-19
Audit: 309234
Organization: Hale County Hospital (AL)

AI Summary

  • Core Issue: The Hospital misreported certain COVID-19 expenses in the Period 2 Provider Relief Fund report due to lack of proper documentation.
  • Impacted Requirements: Internal controls for accurate reporting under 45 CFR 75.342 were insufficient, leading to errors in expense classification and timing.
  • Recommended Follow-Up: Update policies and procedures for federal grant reporting to ensure accurate documentation and compliance.

Finding Text

Finding 2022-003 – COVID-19 Provider Relief Fund – Assistance Listing Number 93.498 – Reporting (Material Weakness) Criteria: The Authority should have appropriate internal controls in place to ensure that the reporting requirements are met, and that amounts utilized in the reports are reported accurately and in accordance with 45 CFR 75.342. Condition: The Period 2 Provider Relief Fund (PRF) report submitted during the year ended September 30, 2022, was tested. Certain expenses identified by management for reimbursement lacked proper support, including 3 expenses totaling $2,210. However, the Hospital had sufficient other eligible COVID related expenses to substitute for the unsupported expenses. As a result, the Hospital incorrectly reported a portion of eligible expenses in the wrong quarter and the wrong expense classification on the Period 2 PRF report. Cause: Certain expenses reported lacked sufficient supporting documentation. Effect: Errors were made in the reporting of quarterly COVID expenses on the Period 2 PRF. However, there was no impact to total funding received or retained by the Hospital due to the error. The total amount of COVID expenses reported for the Period 2 PRF was accurate, and the amount reported per the schedule of expenditures of federal awards was also accurate. Questioned Costs: None. Repeat Finding: This is a repeat finding. Recommendation: Policies and procedures over federal grant reporting should be modified to ensure amounts are reported accurately. View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and is in the process of implementing the recommendations.

Corrective Action Plan

Finding 2022-003 – COVID-19 Provider Relief Fund – Assistance Listing Number 93.498 – Reporting (Material Weakness) We are implementing policies to address the audit finding 2022-003 as follows: We have implemented a policy to ensure that all future Provider Relief Fund reporting is reviewed prior to filing. Anticipated completion date: September 30, 2024

Categories

Reporting Cash Management Material Weakness

Other Findings in this Audit

  • 401242 2022-002
    Material Weakness Repeat
  • 401244 2022-004
    Significant Deficiency Repeat
  • 977684 2022-002
    Material Weakness Repeat
  • 977685 2022-003
    Material Weakness Repeat
  • 977686 2022-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $6.51M
93.301 Small Rural Hospital Improvement Grant Program $277,991
93.461 Covid-19 Testing for the Uninsured $54,794